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November 9, 20269 min read

The Tribe That Sued First Is Now Spending Its Settlement on Buildings

On Friday afternoon, in a small city twenty miles east of the Cherokee Nation's capital, Principal Chief Chuck Hoskin Jr. and Deputy Chief Bryan Warner proposed a $10 million outpatient substance use treatment building on Highway 59. Ten thousand square feet, at 82102 Highway 59 in Stilwell. Nothing about the announcement was dramatic: no new beds, no ribbon, no patients. The Tribal Council's committee meetings take it up Monday night.

It is the fourth construction project the tribe has launched with opioid settlement money, and by far the smallest. The Tahlequah residential campus runs 45,000 square feet with a hundred inpatient beds and an outpatient hub. Two more recovery centers, in Tahlequah and Vinita, are also under construction. All three are scheduled to finish in 2027; the Stilwell building has no published completion date at all.

What makes the proposal worth reading closely is not the square footage. It is the account the money comes out of.

A capital fund, not a grant program

Cherokee Nation does not hand its settlement dollars to outside providers and hope. In 2022 the Tribal Council amended the Public Health and Wellness Fund Act to create a Behavioral Health Capital Fund, and the amendments directed most of the tribe's opioid settlement proceeds into construction — buildings for behavioral health and addiction treatment, owned and operated by the tribe. Further amendments in 2023 and 2026 pushed more money into the same account. Stilwell would be paid for from that fund, and Deputy Chief Warner was explicit about the design intent: the facility would bring treatment "under the direct management of our Health system," rather than through the external partners the tribe currently contracts.

The arithmetic has been reported two different ways, and the gap is worth holding onto. Hoskin's own line on Friday was that in 2022 the tribe "locked down nearly $100 million in opioid settlement funds." The Associated Press, reporting in May, put the amount the tribe recovered through settlements with opioid manufacturers at roughly $150 million. Both numbers can be right — one describes what was committed to the tribe's plan at a point in time, the other what the tribe has recovered in total — but nobody has published the reconciliation, and the difference is fifty million dollars.

For scale: settlement agreements nationally now total nearly $58 billion according to the tally kept by Christine Minhee at Opioid Settlement Tracker, of which about $1.3 billion is going to hundreds of tribes and Alaska Native corporations over time. Cherokee Nation's share is roughly a ninth of every dollar set aside for tribal governments in the United States. That is what being first buys. The tribe sued the opioid industry in 2017, before any state did, and it did so, in Hoskin's telling, because Cherokee leaders had watched the tobacco litigation of the late 1990s resolve without them.

"There will never be another era in which there's some industry that does damage to the Cherokee Nation, damage to the Cherokee people, where we will be bystanders looking for state legislatures, state attorney(s) general to get us justice," he said in May.

What capital dollars can buy, and what they cannot

Here is the structural bet, stated plainly. Settlement money is finite and mostly restricted to abating the crisis. Buildings are the least contestable use of it: concrete, steel, a deed in the tribe's name, no annual renewal. Staff is the opposite. Clinicians, prescribers, case managers and residential technicians are recurring costs that a capital fund cannot absorb, and every settlement jurisdiction in the country is now discovering the same thing — the construction is the easy half.

Cherokee Nation has an advantage most counties do not, because it already runs a health system that employs its own providers. It also has a number that puts the levels of care question in sharper terms than any ribbon-cutting will. Juli Skinner, senior director of the tribe's behavioral health center, told AP that between 50 and 70 Cherokee citizens typically need to be connected to residential treatment each month. Today, if one of them walks into an emergency room, a primary care clinic or a clinic on the reservation and asks for help, the tribe refers them out to a contracted facility it does not own.

A hundred beds against a monthly queue

Whether a hundred beds in Tahlequah closes that gap depends entirely on average length of stay, which the tribe has not published. At 28 days, a hundred beds would turn over roughly thirteen times a year, which is more episodes than the monthly queue implies. At 60 or 90 days, the same beds produce a fraction of that, and the queue stops being theoretical. The honest position is that the published figures do not settle it. What can be said is that Stilwell adds no residential capacity at all — it is outpatient only — so after 2027 the tribe's inpatient footprint will be one campus, one hundred beds, in one county.

The Stilwell proposal also arrives with its procurement clock already running. The bid solicitation opened October 22 and closes November 17, and is posted on CherokeeBids.org. That is two weeks before the project was announced and eighteen days before the council vote that would authorize it. Awarding contracts on a schedule that anticipates a legislative decision is not unusual in tribal or state government, but it does mean the solicitation, not the resolution, is the document that tells you what this building will actually be.

Fourteen counties, a thousand deaths, a Narcan box by the door

The need is not abstract. In the fourteen counties that make up Cherokee Nation, more than 1,000 people died of opioid-related causes between 2020 and 2024 — in a service area where many residents live in rural communities and where, as Hoskin puts it, language and culture are often strongest.

Ashley Caudle, a Cherokee citizen who runs a small business in Stilwell, kept free naloxone outside her storefront last year and restocked it "every week, almost daily." Stilwell is exactly the kind of place the national data describes: opioid death rates for Native Americans tracked white Americans closely until fentanyl took hold of the supply, and then, particularly through the pandemic, moved above them. Nationally, opioid overdoses have been linked to more than 900,000 deaths since 1999.

An outpatient building in that town will not reverse a supply-driven death rate. What it can do is shorten the distance between a person asking for help and a prescriber, which in a rural county is a real clinical variable rather than a rhetorical one. For anybody weighing opioid addiction treatment options in the region, the practical change is that buprenorphine and counseling could eventually be available in the same county where the overdose happened, instead of twenty miles west on a highway.

Culture as retention infrastructure

The Tahlequah campus has been designed around a claim that behavioral health researchers have made for years and that tribal providers have made for longer: that cultural connection is a protective factor, not a decoration. The building faces east to meet the rising sun. It has a stickball court, a garden for growing selu — corn — a gym, space for meditation, and a sweat lodge a short drive away. The tribe held listening sessions with community members and elders on the layout, and Cherokee language experts are finalizing the center's name.

"Culture is such a protective factor," Skinner said. "Historical trauma has hit a lot of people — Native Americans, tribes — hard. Lost language, lost traditional ways, and we'll never get all of that back."

Read that as a clinical statement and it becomes the most interesting thing in the whole plan. Residential treatment's dominant failure mode is not that patients refuse it; it is that they leave early. A facility that looks like the community it serves, staffed by people from that community, is a retention intervention aimed at the exact point where retention usually breaks. Whether it works is an empirical question — and here the plan goes quiet. No outcome measures, no evaluation partnership, no commitment to publish readmission or completion rates has been announced for any of the four buildings.

Sovereignty cuts both ways

The national argument about opioid settlement money has been about whether it reaches treatment at all, or gets absorbed into general budgets, sheriff's departments and road projects. Cherokee Nation is not that story. Its money is going straight into treatment infrastructure that the government which received the money will own and run, with no intermediary vendor taking a program-management cut.

The cost of that arrangement is that there is no external check. A tribal government is sovereign; no state auditor reviews the Behavioral Health Capital Fund, and no national settlement dashboard carries Cherokee Nation's line items unless the tribe chooses to report them. The bid postings on CherokeeBids.org are the main public window into cost, and they close November 17.

What happens Monday night

If the council's committee advances the resolution Monday night, the full Council takes it up the same evening, and the tribe's construction and procurement teams begin awarding contracts. If it stalls, a solicitation that has been open for three weeks expires with nothing to attach to.

What is already true either way is that the first tribal nation to sue the opioid industry is now the one building the most visible treatment infrastructure in Oklahoma with the proceeds — and that the test of the next five years will not be whether the buildings open on schedule. It will be whether anybody outside the tribe is ever told how the patients inside them did.

RR
Rainier Rehab Editorial Team

Editorial Board

LADC, LCPC, CASAC

The Rainier Rehab editorial team consists of licensed addiction counselors, healthcare journalists, and recovery advocates dedicated to providing accurate, evidence-based information about substance abuse treatment and rehabilitation.

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